Categorized | Random Rants

European Domainers Would LOVE to See a Weaker Euro and a Stronger Dollar

Posted on 29 April 2011 by Andrei

Lots of US investors make the mistake of thinking that European domainers benefit from the fact that the Euro is strong and the dollar is weak. Wrong, wrong, wrong! In fact, a strong Euro represents a disadvantage if you earn a living online and live in Europe, as I will explain through this blog post.

Get Paid in USD, Buy in EUR

If you earn a living online, you usually get paid in dollars and NOT EUR! So as a domainer or let’s say as a person who earns a living online in general, you get paid in USD but have to pay for everything in EUR since you live in Europe.

The result: the weaker the USD becomes, the less buying power you will have as a EU citizen who earns a living online and gets paid in USD. Makes sense?

Exceptions

On the other hand, people who work with European companies more than US ones or even individuals who have jobs and get paid in EUR are at an advantage when investing in domains because they get paid in EUR and buy domains in USD.

At the end of the day though, most of people who earn a living online (yours truly, for example) work mostly with US companies and get paid in USD. In my case:

1) all of the networks I work with are from the US and they pay me in USD

2) in most cases, I sell domains to people who pay me in USD

3) pretty much all of the individuals who buy services via Articles.biz (all of our writers are from the US by the way), Banners.biz, Logos.biz, Themes.biz, UnmanagedHosting.com, MiniEscrow.com and so on pay in USD

The list could go on and on but this much is certain: the overwhelming majority of Europeans who earn a living online would love to see a weaker EUR and a stronger dollar!

4 Comments For This Post

  1. Dotmainer Says:

    Huh,
    i would make it more simple.

    When euro is very strong its time to buy:
    – Buy domains on aftermarket, pay your renewals !!! , services etc.

    When dollar get stronger its time for sales and cash payments from parking etc.

    This way it’s possible that same domain purchased for same amount (or just bit more) make me higher profit.

  2. Andrei Says:

    @Dotmainer: what you’re doing is called currency speculation, there’s absolutely nothing wrong with it but it’s something anyone can do and not just limited to EU residents.

    What I’m talking about is the fact that, generally speaking, European domainers who get receive most of their payments in USD (the situation most domainers/webmasters who earn a living online are dealing with) would love to see a weaker Euro and a stronger dollar because they get paid in USD and have to pay for everything (assets such as real estate, for example) in EUR 🙂

  3. EU Developer Says:

    Yeah, I agree as a EU developer who has clients from the US and gets paid in USD. I can’t increase the price either because of heavy competation. On the other side, right now it’s a good time to buy stuff. 😉

  4. Bennie Rachlin Says:

    Hey, there’s more to metalheads than long hair — they’re always working on their craft.